Fitch Expects to Rate Mercedes-Benz Auto Lease Trust 2011-B; Presale Issued

NEW YORK--(BUSINESS WIRE)--Fitch Ratings expects to assign the following ratings to Mercedes-Benz Auto Lease Trust 2011-B:

--$197,150,000 class A-1 asset-backed notes 'F1+sf';

--$486,000,000 class A-2 asset-backed notes 'AAAsf'; Outlook Stable;

--$340,000,000 class A-3 asset-backed notes 'AAAsf'; Outlook Stable; and

--$80,525,000 class A-4 asset-backed notes 'AAAsf'; Outlook Stable.

Key Rating Drivers

Stable Collateral Quality: The pool is consistent with that of MBALT 2011-A, with a strong WA FICO score of 768, consistent seasoning (11 months), and a well-diversified residual value (RV) maturity schedule. There has been a reduction in longer term leases in 2011-B, which Fitch views as a positive.

Consistent CE Structure: 2011-B incorporates a sequential-pay structure, consistent with the prior transaction. Initial CE is unchanged from 2011-A at 16.75% of the initial securitization value growing to 21.25% of the initial securitization value. Initial excess spread is expected to be 5.55%.

Improved Loss Performance: Credit and residual losses on MBFS's portfolio declined significantly from the elevated levels seen in 2008 and 2009. This is a result of strong obligor credit quality and wholesale used vehicle market leading to higher recovery rates and residual realization.

Stable Corporate Health: Fitch rates Daimler AG, the parent of MBFS, 'A-/F2' with a Stable Rating Outlook. MBFS has good capabilities as an originator/underwriter/servicer, as evidenced by historical performance of its managed portfolio and prior securitizations.

Unstable Macroeconomic Conditions: While the wholesale vehicle market in the U.S. is currently strong, Fitch remains concerned regarding potential macroeconomic deterioration, which could lead to increased credit and residual loss levels.

Legal Structure Integrity: The legal structure of the transaction should provide that a bankruptcy of MBFS would not impair the timeliness of payments on the securities.

The presale report is available to all investors on Fitch's website at 'www.fitchratings.com'. For more information about Fitch's comprehensive subscription service FitchResearch, which includes all presale reports, surveillance, and credit reports on more than 20 asset classes, contact product sales at [phone] or at '[e-mail]'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Mercedes-Benz Auto Lease Trust 2011-B: Public Report' (Nov. 7, 2011);

--'Mercedes-Benz Auto Lease Trust 2011-B -- Appendix (Nov. 7, 2011);

--'Global Structured Finance Rating Criteria' (Aug. 4, 2011);

--'Criteria for Rating U.S. Auto Lease ABS ' (May 24, 2011).

Applicable Criteria and Related Research: Mercedes-Benz Auto Lease Trust 2011-B (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=655490

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569

Criteria for Rating U.S. Auto Lease ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=629749

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